Margin trading in India is growing fast – the industry MTF book has expanded from Rs 24,920 crore in FY23 to Rs 1.15 lakh crore today.
January 2026 peaked at Rs 1.20 lakh crore. Then came March. FII outflows, geopolitical uncertainty, and broad de-risking pulled the book to Rs 1.05 lakh crore. But it’s bouncing back.
Over 8 lakh traders on 5paisa have already activated MTF.
If you haven’t looked at it yet, this post covers everything you need to know about Pay Later (MTF).
What is MTF?
Put simply, Margin Trading Facility allows you to purchase stocks by contributing only a part of the total investment up front. The rest? Your broker covers it. You pay interest only on the borrowed amount, only for the days you hold it .
Margin Trading Facility lets you:
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Take positions you’d otherwise skip due to capital limits
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Run multiple trades without locking all your funds in one
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Scale conviction when setups are strong
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Stay in trades beyond intraday without full capital commitment
Interest Rates On 5paisa: A Clear Picture
Say you’ve got Rs 15,000 in your trading account and the stock is at Rs 300.
Without MTF, you can buy 50 shares, so if the stock moves from Rs 300 to Rs 315 (+5%), you make Rs 750.
With 5paisa Pay Later (MTF), using the same Rs 15,000, you can take a Rs 60,000 position (200 shares), with Rs 45,000 funded at 0.026% per day.
That works out to roughly Rs 12 a day in interest, or about Rs 120 if you hold for 10 days. On the same 5% move, your profit becomes Rs 3,000, and after interest, you’re left with approx. Rs 2,880.
Margin Trading Comes With Risks
The flip side is just as important. If the stock drops 5% (Rs 300 → Rs 285), the total loss on the position is Rs 750 without MTF. With MTF, the loss will be Rs 3,000 and will come out of your capital. Leverage magnifies both profits and losses.
Why Choose 5paisa?
0% Interest for 30 Days(Limited-Time Offer): For a limited time, eligible users can enjoy zero interest for t he first 30 days
Low Interest Rates: Interest for margin trading facility starts as low a s 0.026% per day.
Unlock 4X Leverage: Amplify your buying power and take larger positions in the market with up to four times the capital you hold.
Clear Visibility: Real-time tracking of your utilised and available margin ensures there are no surprises. You always know where your positions stand.
No Surprise Closures: Unlike platforms that square off positions automatically due to back-end ledger adjustments, 5paisa leaves that decision to you. You choose when to convert or exit.
To help you test waters, we are offering 0% interest for the first 30 days for new users.
Calculate your leverage and upfront margin instantly with our MTF Calculator.
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Drop if you have any questions on MTF below. 
Happy Trading!